Customer Experience Improvement: When Bad News is Good News

When Bad News is Good News Customer Experience Improvement Lynn Hunsaker Strategic Customer Experience Mentor Author: • Metrics You Can Manage For Success • Customer Experience Improvement Momentum • Innovating Superior Customer Experience www.ClearAction.biz See Creative Commons License: http://creativecommons.org/licenses/by-nc-nd/3.0/us/ © 2007 ClearAction. All rights reserved.

Key #1: Plan Full Use of Customer Feedback Traditional View Customer-Centric View Engineering Production Human Resources Marketing M k ti Sales Engineering Custo e Customer Sales Marketing Finance © 2007 ClearAction. All rights reserved.

Key #2: Listen to Right Customers in Right Way Customer A Customer B Customer C Product A + + + High Profit Product Product B + Profitable Product Product C - - Losing Product Product D + - Mixed-Bag Product High Profit High-Profit Mixed Bag Mixed-Bag Losing Customer Customer Customer SOURCE: Thomas N. Petro – “Profitability: The Fifth ‘P’ of Marketing”, Bank Marketing Customers High Margin Medium Margin Low Margin Many Accountable Reactive Basic or Reactive Medium # Proactive Accountable Reactive Few Partnership Proactive Accountable SOURCE: Kotler & Keller – Marketing Management, 12th Edition © 2007 ClearAction. All rights reserved.

Key #3: Integrate Intelligence Sources & Actions Choose the Value Provide the Value Communicate Value Customer Market Value Product Service Pricing Sourc Distribut Sales Sales Adver Segment Selection Position Develop g p Develop p -ing g -ing g Force Prom -tising g -ation / Focus -ing -ment -ment Making Servicing -otion Total Customer-Focused Value Chain Customer Loyalty Behavior Total Experience Innovation Analysis Customer Programs Touchpoint Alignment Value Guidance Sales Databases Surveys Data Ownership Automation Usability Service Advisory Root Causes Custom Messages Ethnography Billing Boards Action Plans Custom Services Lifecycle Analysis Switchboard User Groups Leading References Purchase Process Website, Ads Lost Sales Indicators Games, Rewards Post-Purchase Collateral, Complaints Prediction Communities, Complements Events Lifetime Value etc. Web 2.0 etc. etc. etc. etc. Customer Experience Management (CEM) © 2007 ClearAction. All rights reserved.

Key #4: Internal Branding Interview Clients Survey Reports Presentations • Multiple Functions • Graphs, Comments • Interpretation Metric Dashboards Tashiro Charts Conduct Workshop CUSTOMER FOCUS MEASURES WORKSHOP Title of Action Plan Customer Focus Measures Customer Feedback Problem Statement: (Internal - Leading Indicators) (Voice of the Customer) 1. Voice of the 1. % Execution and Feedback Plans Customer Perceptions Customer Goal: 2. 2. M1 M2 M3 M4 3. Customer Customer Satisfaction 3. Owner: Focus Measures Actual & Target Measures Action Plan: Improvement Action Plans to Benchmarked Owner Deadlines Targets 1.) __________________________________________________ Action Plan (Include Program Name, Owner, Completion Date) Customer Satisfaction Measures (External - Lagging Indicators) 2.) __________________________________________________ 1. 1. (Satisfaction Index) 3.) __________________________________________________ 2. 2. ( (% Deterioration) ) 3. 3 (% Improvement) • Leading & Lagging • Actions + Metrics • Prioritization 4. . 4. (Competitiveness Index) APPLIED MATERIALS APPLIED MATERIALS Incentives Operations Reviews Confirm w/Clients • Recognition & Bonuses • Recognition & Bonuses • Progress Reports © 2007 ClearAction. All rights reserved.

Key #5: Process Improvement Feedback & Improvement Actions Inputs Outputs Supplier Process Customer Raw Materials Products Services Supplier Process Customer Performance Performance Satisfaction • On-time delivery • Cycle time • Satisfaction • Compliance to specs • Re-work • Retention • etc. • Scrap • Cross-sell • Maturity ratings • Profit/transaction • etc. • etc. © 2007 ClearAction. All rights reserved.

Key #6: Early Warning Signals Control Points = early warning signals of performance v. specs by monitoring KPIs within the process Example: Developing Collateral Check Check Point Point START END Control Point? ________ ________ _______ _______ For each business process: What can be checked at each step to be sure the output will match client expectations? Establish tally and ‘early fix for non-conformances to prevent scrap re-work delays early fix’ scrap, re-work, © 2007 ClearAction. All rights reserved.

CEM: Take Advocacy To The Next Step Traditional Go To The Advantage Advocacy Next Level Expedite issues Retain large Prevent issues systematically & for big customers accounts Align effort with lifetime value Rewards, Communities, Increase Ensure seamless touch-points & Experiential marketing, revenue Prevent hassles CRM Advisory boards, Become Embrace negative feedback via Reference programs, customer-centric value-chain involvement Surveys Product user groups, Improve Expand inputs to include the Usability testing product performance customer’s full experience with brand Customer service Maintain use Add customer-focus to value chain customer focus of product behind service functions © 2007 ClearAction. All rights reserved.

What Is The Difference? Customer Customer Customer Relationship Engagement Satisfaction Management M t Customer Experiential Customer Experience Marketing Loyalty Management User Customer Customer Experience Advocacy Retention © 2007 ClearAction. All rights reserved.

CEM: Do The Whole Job Subset: Internal Branding & Customer-Centricity g y Customer Experience Management (CEM) Loyalty Behavior Programs CRM Customer Engagement Total Automation: Customer Sales Force, Experiential Analysis Customer Service, C stomer Ser ice Marketing Marketing Customer Events Games, Value Customized Rewards Online Messages Communities, References, R f & Services Internal I t l Blogs Advisory Branding Boards, Touchpoint User Groups Customer- Alignment Surveys Focused Total Value Chain Experience Innovation © 2007 ClearAction. All rights reserved.

CEM: Doing the Whole Job Bad news is good news for ‘staying ahead of the curve’ staying curve via customer-focused value chain, touch-point alignment, & experience innovation INCENTIVES & Loyalty Behavior Programs RECOGNITION Total Experience Innovation PREDICTIVE DASHBOARDS Customer Touchpoint Alignment Customer-Focused Value Chain INTERACTION Total Customer Analysis BRIDGES Customer Value Guidance More information at www.clearaction.biz © 2007 ClearAction. All rights reserved.

If You Like These Concepts, Get the Book! 5 Keys Explained >20 Tools & Techniques Step by Step Step-by-Step Guidelines clearaction.biz/momentum 20% Discount Code: SlideShare © 2007 ClearAction. All rights reserved.

Customer Experience Resources Podcasts clearaction.podomatic.com Blog customerexperience.vox.com blogtalkradio.com/customerexperience Every Month y slideshare.net/clearaction lid h t/ l ti brighttalk.com/channels/2107/view © 2007 ClearAction. All rights reserved. © 2009 ClearAction All

CEM Mentoring • Clearly see what’s needed to take immediate action request advice at http://eepurl.com/blpE d i h // l /bl E ©© 2009 ClearAction. All rights reserved. 2007 ClearAction. All rights reserved.

Testimonials • “ClearAction taught us things that wouldn’t readily cross our minds and has increased our efficiency & accuracy in many areas • We hi hl W highly recommend Cl A ti as a b i d ClearAction business consultant” lt t” • “ClearAction’s assistance was helpful • We look forward to working together in future” • “Lynn is a supe b s a eg s , d ag os c a , facilitator & team p aye y s superb strategist, diagnostician, ac a o ea player • She is the most knowledgeable professional I know in intertwining voice of the customer and marketing operations” © 2007 ClearAction. All rights reserved. © 2009 ClearAction All

CEM Mentoring • Clearly see what’s needed to take immediate action CEM Enabling • Clear the way for organization-wide action 1-877-CEM-ROI-4 toll-free 1-408-687-9700 direct Lynn.Hunsaker@ClearAction.biz © 2007 ClearAction. All rights reserved. © 2009 ClearAction. All rights reserved.

Why Not Share This? BookMark it eMail it Easy access for you! Introduce me to your boss or colleague! Write on my wall Fave it! F Follow me! Add me to your contacts! Tweet it Embed in a blog or Facebook! Please note that this presentation is protected by Creative Commons License (see http://creativecommons.org/licenses/by-nc- nd/3.0/us/), which lets you know you can share it with others as long as you do not alter it in any way, nor use it for commercial purposes purposes. © 2007 ClearAction. All rights reserved.

Customer Experience Improvement: When Bad News is Good News

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